October 1, 2022

Media: China's central bank is testing its digital currency in two cities

The People's Bank of China (NBK) is preparing to test the electronic payment system on the basis of its own digital currency in the cities of Shenzhen and Suzhou. It is reported by The Block, citing local media.

To this end, the NBK allegedly entered into a partnership with four commercial banks and three telecommunications companies.

According to media reports, the central bank in every way encouragesnew partners to come up with their own strategies for the development and distribution of the new system. Some banks decided to cooperate with telecom companies to develop SIM cards with built-in digital wallets, others created their own applications.

The pilot program will focus on industries such as transportation, education, trade and medicine. In Shenzhen, testing is expected to be launched later this year.

The new system assumes that the NSC willcharge new digital currency to commercial banks in exchange for a reserve in RMB. Users will need to register a digital wallet in financial institutions to receive and use coins.

Recall that on ForkLog there is detailed material about the upcoming launch of the Chinese digital currency.